XPMEX:XP N 58 Net Margin % is 68.18% as of Mar. 2026, which is 37% above its 10-year median of 49.66. GuruFocus rates MEX:XP N with a GF Score™ of 58/100 and a GF Value™ of MXN547.58 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 774 Capital Markets companies, XP ranks better than 89.28% on this metric.
Net margin is calculated as Net Income divided by its Revenue. XP's Net Income for the
three
months ended in Mar. 2026 was MXN4,545 Mil. XP's Revenue for the
three
months ended in Mar. 2026 was MXN6,665 Mil. Therefore, XP's net margin for the quarter that ended in Mar. 2026 was 68.18%.
The historical rank and industry rank for XP's Net Margin % or its related term are showing as below:
MEX:XP N'
s Net Margin % Range Over the Past 10 Years
Min: 22.46 Med: 49.66 Max: 64.89
Current: 63.67
MEX:XP N's Net Margin % is ranked better than 89.28% of 774
companies
in the Capital Markets industry
Industry Median: 14.305
vs MEX:XP N: 63.67
XP (MEX:XP N) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
XP Net Margin % Related Terms
XP Net Margin % Historical Data
* Premium members only.
The historical data trend for XP's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:XP N vs SNEX, FIGR, HLI: Net Margin % Comparison
For the Capital Markets subindustry, XP's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
XP Net Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, XP's Net Margin % distribution charts can be found below:
* The bar in red indicates where XP's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XP (MEX:XP N) has a Net Margin % of 68.18% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on XP and its competitors. This is 37% above median its historical median of 49.66. Over the past decade, XP's Net Margin % has ranged from 22.46 to 64.89. According to the industry distribution chart, XP ranks #83 out of 774 companies in the Capital Markets industry, placing it in the top 10.7%.
Is XP's Net Margin % too high?
XP's current Net Margin % of 68.18% is 37% above median its 10-year median of 49.66. Over the past 10 years, this metric has ranged from a low of 22.46 to a high of 64.89. The Capital Markets industry median Net Margin % is 14.31. XP's value of 68.18% is 376.6% above this industry median. Based on the distribution chart, XP ranks #83 out of 774 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, XP has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does XP's Net Margin % compare to SNEX and FIGR?
According to the Capital Markets industry distribution chart, XP ranks #83 out of 774 companies for Net Margin %. This places XP in the top 11% of its industry — outperforming the majority of peers. The industry median Net Margin % is 14.31. XP's value of 68.18% is 376.6% above this benchmark. Historically, XP's own Net Margin % has ranged from 22.46 to 64.89 over the past decade. While the company's 10-year median is 49.66 vs. the industry median of 14.31, XP has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Capital Markets company?
The median Net Margin % among Capital Markets companies is 14.31, based on 774 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. XP's current Net Margin % of 68.18% is 376.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on XP and its competitors. For the Capital Markets industry, the median Net Margin % is 14.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XP's current Net Margin % is 68.18%, which is 37% above median its own 10-year median of 49.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XP stock overvalued right now?
Based on GuruFocus' analysis, XP (MEX:XP N) is currently considered Possible Value Trap. The stock's GF Value™ is MXN547.58, compared to a current price of MXN315.00 — trading 42.5% below its estimated fair value. The current Net Margin % is 68.18%, which is 37% above median its 10-year median of 49.66 and 376.6% above the Capital Markets industry median of 14.31. XP's overall GF Score™ is 58/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For XP (MEX:XP N), the current Net Margin % is 68.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is XP (MEX:XP N) Overvalued in 2026?
Based on GuruFocus' analysis, XP stock appears to be undervalued.
The current stock price of MXN315.00 is trading 42.5% below its estimated GF Value™ of MXN547.58.
GuruFocus considers XP to be Possible Value Trap.
Key valuation signals for MEX:XP N:
Net Margin %: 68.18% (37% above median its 10-year median of 49.66)
GF Value™: MXN547.58 vs. price of MXN315.00 (42.5% below fair value)
Industry Position: 376.6% above the Capital Markets median (#83 of 774)
No single metric tells the full story. See the MEX:XP N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission. Geographically, the company derives maximum revenue from Brazil and also has its presence in other countries.
58GF Score
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